Advertisement

Case Study on Stakeholder Relationships

Managing Stakeholder Expectations in the UK and German Pharmaceutical Industry
  • Linda O’Riordan
Chapter
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)

Abstract

Chapter 3 focuses on introducing a case study of the stakeholder management challenges facing decision-makers in the pharmaceutical industry in the UK and Germany. It highlights the specific contextual operating dilemmas in what could be considered a highly complicated operating context. This context-specific focus establishes the complex quality of the quest to harmonise stakeholder interests in a responsible way for this sector.

References

  1. ABPI. (2005). Association of British Pharmaceutical Industry. Accessed February 2005, from www.abpi.org.uk.
  2. ABPI. (2010). Association of British Pharmaceutical Industry. Accessed June 2010, from www.abpi.org.uk.
  3. ABPI. (2013). Corporate social responsibility. Association of the British Pharmaceutical Industry. Accessed October 2013, from http://www.abpi.org.uk/industry-info/csr/Pages/default.aspx.
  4. Albareda, L., Lozano, J. M., Tencati, A., Midttun, A., & Perrini, F. (2008). The changing role of governments in corporate social responsibility: Drivers and responses. Business Ethics: A European Review, 17(4), 347–363.CrossRefGoogle Scholar
  5. Alpern, J. D., Stauffer, W. M., & Kesselheim, A. S. (2014). High-cost generic drugs—Implications for patients and policymakers. The New England Journal of Medicine, 371, 1869–1862. Accessed March 2016, from http://www.nejm.org/doi/full/10.1056/NEJMp1408376.
  6. Altenstetter, C. (1987). An end to a consensus on health care in the Federal Republic of Germany? Journal of Health Politics, Policy and Law, 12(1987), 505–536.CrossRefGoogle Scholar
  7. Anderson, R. (2014). Pharmaceutical industry gets high on fat profits. BBC News. 6 November 2014. Accessed March 2016, from http://news.bbc.co.uk/2/hi/health/7149423.stm.
  8. BBC. (2008a). Huge contrasts in devolved NHS. BBC News. 28 August 2008. Accessed March 2016, from http://news.bbc.co.uk/2/hi/health/7586147.stm.
  9. BBC. (2008b). NHS now four different systems. BBC News. 2 January 2008. Accessed March 2016, from http://news.bbc.co.uk/2/hi/health/7149423.stm.
  10. Blair, M. M. (1998). For whom should corporations be run? An economic rationale for stakeholder management. Long Range Planning, 32(2), 195–200.CrossRefGoogle Scholar
  11. Booz & Company. (2013). Pharma emerging markets 2.0: How emerging markets are driving the transformation of the pharmaceutical industry. PwC Report. Accessed March 2016, from http://www.strategyand.pwc.com/media/file/Strategyand_Pharma-Emerging-Markets-2.0.pdf.
  12. BPI. (2013). Pharma data 2013. German Pharmaceutical Industry Association. Accessed March 2016, from http://www.bpi.de/fileadmin/media/bpi/Downloads/Internet/Publikationen/Pharma-Daten/Pharmadaten_2013_EN.pdf.
  13. Brammer, S., & Pavelin, S. (2004). Building a good reputation. European Management Journal, 22(6), 704–713.CrossRefGoogle Scholar
  14. Business Week. (2007). Drug marketing: will pharma finally have to fess UP? October 8th, Business Week, cited in Crane and Matten, 2007.Google Scholar
  15. Campbell, D. J. (2000, March). Legitimacy theory or managerial reality construction? Corporate social disclosure in Marks and Spencer Plc corporate reports, 1969–1997. Accounting Forum, 24(1), 80–100.CrossRefGoogle Scholar
  16. Carroll, A. B., & Buchholtz, A. K. (2009). Business and society: Ethics and stakeholder management (7th ed.). Mason, OH: Cengage Learning.Google Scholar
  17. CIA. (2015). UK chemical and pharmaceutical industry facts and figures. Chemical Industry Association Report. Accessed March 2016, from http://www.cia.org.uk/Portals/0/20150217%20CIA%20facts%20and%20figures%202015.pdf.
  18. Civitas. (2013). Healthcare systems: Germany. Based on the 2001 Civitas Report by David Green and Benedict Irvine Updated by Emily Clarke (2012) and Elliot Bidgood (2013). Accessed March 2016, from http://www.digitalezorg.nl/digitale/uploads/2015/03/germany.pdf.
  19. Commonwealth Fund. (2014). Mirror, mirror on the wall, 2014 update: How the U.S. health care system compares internationally. Commonwealth Fund Publication. Accessed March 2016, from http://www.commonwealthfund.org/publications/fund-reports/2014/jun/mirror-mirror.
  20. Crane, A., & Matten, D. (2010). Business ethics: A European perspective. New York: Oxford University Press.Google Scholar
  21. CSR Risk Mapping Initiative. (2004). Human rights and business risk in the pharmaceutical and chemical sectors. Accessed October 2004, from www-iblf.org/csr/csrwebassist.nsf.
  22. Delamothe, T. (2008). NHS at 60: Founding principles. British Medical Journal (BMJ), 336, 1216–1218. doi: 10.1136/bmj.39582.501192.94.CrossRefGoogle Scholar
  23. Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65–91.Google Scholar
  24. EIU. (2014, June). Industry report healthcare Germany. The Economist Intelligence Unit. Accessed March 2016, from http://www.eiuperspectives.economist.com/healthcare/2015-quality-death-index.
  25. Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Oxford: Capstone Publishing.Google Scholar
  26. Esomar. (2006). Piloting the storm: Pharmaceutical industry and public opinion in emerging markets. Healthcare Report. Esomar. Accessed March 2016, from https://directory.esomar.org/moreinfo/1424/Healthcare-Piloting-the-storm.pdf.
  27. Ethical Corp. (2009). If Roche sneezes the pharmaceutical industry catches a cold. Accessed September 2009, from www.ethicalcorp.com.
  28. Ferrell, O. C., Fraedrick, J., & Ferrell, L. (2010). Business ethics: Ethical decision-making and cases. Boston, MA: Centage Learning.Google Scholar
  29. Finance Maps. (2016). German pharmaceutical companies. Accessed March 2016, from http://finance.mapsofworld.com/company/pharmaceutical/germany.html.
  30. Fischer, G. (1964). Allgemeine Betriebwirtschaftslehre [General Business Education] (9th ed.). Heidelberg.Google Scholar
  31. Forbes. (2006). Pill pushers: How the drug industry abandoned science for salesmanship. May 8th, 94–102.Google Scholar
  32. Forbes. (2014). Best of the biggest: How profitable are the world’s largest companies? Forbes. 13th May, 2014. Accessed March 2016, from http://www.forbes.com/sites/liyanchen/2014/05/13/best-of-the-biggest-how-profitable-are-the-worlds-largest-companies/#14e954ba4c33.
  33. Forbes. (2015). Pharma and healthcare. Forbes. 23 March, 2015. Accessed March 2016, from http://www.forbes.com/sites/johnlamattina/2015/03/23/big-pharma-but-not-such-big-money/#24948cb63189.
  34. Fürst, M., & Wieland, J. (2004). WerteManagementSysteme in der Praxis: Erfahrungen und Ausblicke [Values Management Systems in Practice: Experience and Outlook]. In Handbuch Werte Management [Value Management Handbook] (pp. 349–391). Hamburg: Murmann Verlag GmbH.Google Scholar
  35. Get Ethical-Ethical Matters. (2004). Hot topics—GlaxoSmithKline. Accessed October 2004, from www.ethicalmatters.co.uk.
  36. GKV-Vergleich. (2016). So finden Sie die beste gesetzliche Krankenkasse. Accessed March 14, 2016, from http://www.finanztip.de/gkv/.
  37. Grant, R. M. (2006). Contemporary strategy analysis. London: Blackwell.Google Scholar
  38. Gray, R. H., Kouhy, R., & Lavers, S. (1995). Corporate social and environmental reporting: A review of the literature and a longitudinal study of UK disclosure. Accounting, Auditing, and Accountability Journal, 8(2), 47–77.CrossRefGoogle Scholar
  39. Grosios, K., Gahan, P. B., & Burbidge, J. (2010). Overview of healthcare in the UK. The EPMA Journal, 1(4): 529–534. Published online 2010 Oct 25. doi: 10.1007/s13167-010-0050-1. Accessed March 2016, from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3405352/.
  40. Habisch, A., Jonker, J., Wegner, M., & Schmidpeter, R. (2005). Corporate social responsibility. Berlin: Springer.Google Scholar
  41. Haniffa, R. M., & Cooke, T. E. (2005). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24(5), 391–430.CrossRefGoogle Scholar
  42. Haugh, R. (2003). Getting the attention of big pharma. Hospitals & Health Networks, 77(10), 44.Google Scholar
  43. Hooper, C.L. (2016). Pharmaceuticals: Economics and regulation. Library of Economics and Liberty. Accessed March 2016, from http://www.econlib.org/library/Enc/PharmaceuticalsEconomicsandRegulation.html.
  44. IFPMA. (2009). International federation of pharmaceutical manufacturers associations. Accessed September 2009, from www.responsiblepractice.com/english/insight/ifpma.
  45. ISO. (2010). Guidance on social responsibility international organisation for standardisation, international standard ISO/DIS 26000, Geneva, Switzerland.Google Scholar
  46. Klein, N. (2000). No logo: Taking aim at the brand bullies. London: Flamingo.Google Scholar
  47. Kröher, M. (2007). Gute Nachbarn [Good Neighbours]. Trends in Good Company Ranking. Manager Magazin, 76, January Issue.Google Scholar
  48. Kurucz, E., Colbert, B., & Wheeler, D. (2008). The business case for corporate social responsibility. In A. Crane, A. McWilliams, D. Matten, J. Moon, & D. Siegel (Eds.), The Oxford handbook of corporate social responsibility (pp. 83–112). Oxford: Oxford University Press.Google Scholar
  49. Lindblom, C. K. (1994). The implications of organisational legitimacy for corporate social performance and disclosure. Paper presented at the Critical Perspectives on Accounting Conference, New York.Google Scholar
  50. Maignan, I., & Ferrell, O. (2003). Nature of corporate responsibilities: Perspectives from American, French, and German consumers. Journal of Business Research, 56, 55–67.CrossRefGoogle Scholar
  51. Mallenbaker. (2004). Corporate social responsibility—What does it mean?. Accessed October 2004, from www.mallenbaker.net/csr/csrfiles/definition.htlm.
  52. Mallin, C. A. (2013). Corporate governance (4th ed.). Oxford: Oxford University Press.Google Scholar
  53. Marsh, N. (2013). Investment behaviour and CSR: Utilizing existing mind-sets to leverage sustainable business. Master Thesis, University of Applied Sciences, (FOM), Cologne, Germany.Google Scholar
  54. May, S., Cheney, G., & Roper, J. (2007). The debate over corporate responsibility. Oxford: Oxford University Press.Google Scholar
  55. McDonough, W., & Braungart, M. (2002). Design for the triple top line: New tools for sustainable commerce. Corporate Environmental Strategy, 9(3), 251–258. doi: 10.1016/S1066-7938(02)00069-6.CrossRefGoogle Scholar
  56. MIIG. (2016). Chemicals and pharmaceuticals: A world class industry. Make it in Germany. Accessed March 2016, from http://www.make-it-in-germany.com/en/for-qualified-professionals/working/industry-profiles/chemicals-and-pharmaceuticals.
  57. Miles, M. P., Munilla, L. S., & Covin, J. G. (2002). The constant gardener revisited: The effect of social blackmail on the marketing concept, innovation, and entrepreneurship. Journal of Business Ethics, 41(3), 287–295.CrossRefGoogle Scholar
  58. MSH. (2016). Management sciences for health. Mission and vision. Accessed March 2016, from https://www.msh.org/about-us/mission-and-vision.
  59. Newsaic. (2001). Worldwide incidence and prevalence rates. Accessed October 15, 2004, from www.newsaic.com/mwaids.html.
  60. O’Riordan, L. (2006). CSR and stakeholder dialogue: Theory, concepts, and models for the pharmaceutical industry. MRES Dissertation University of Bradford, Bradford, UK.Google Scholar
  61. O’Riordan, L. (2010). Perspectives on Corporate Social Responsibility (CSR): Corporate approaches to stakeholder engagement in the pharmaceutical industry in the UK and Germany. PhD Thesis, Bradford University School of Management, Bradford, UK.Google Scholar
  62. O’Riordan, L., & Fairbrass, J. (2008). CSR—Theories, models and concepts in stakeholder dialogue—A model for decision-makers in the pharmaceutical industry. Journal of Business Ethics, 83(4), 754–758.Google Scholar
  63. O’Riordan, L., & Fairbrass, J. (2016). Responsible stakeholder engagement: A comparison of corporate approaches in the UK and German pharmaceutical industry. In L. O’Riordan & P. Zmuda (Eds.), FOM KCC KompetenzCentrum für Corporate Social Responsibility der FOM Hochschule für Oekonomie & Management. Band 2.Google Scholar
  64. OECD. (2001). Competition and regulation issues in the pharmaceutical industry. OECD Report. Accessed March 2016, from http://www.oecd.org/competition/sectors/1920540.pdf.
  65. OECD. (2014). Public expenditure on health: As a percentage of total expenditure health. Accessed March 2016, from http://www.oecd-ilibrary.org/social-issues-migration-health/public-expenditure-on-health_20758480-table3.
  66. OECD. (2015). Health expenditure. Accessed March 2016, from http://www.oecd.org/els/health-systems/health-expenditure.htm.
  67. Peters, A., & Roess, D. (2010). The role of governments in promoting corporate responsibility and private sector engagement in development. UN Global Compact and Bertelsmann Stiftung, USA and Germany.Google Scholar
  68. Pharmaceutical Technology. (2015). Pharma mergers: Big business, bad science?. Accessed August 2016, from http://www.pharmaceutical-technology.com/features/featurepharma-mergers-big-business-bad-science-4467897/.
  69. Phillips, R. (2003). Stakeholder theory and organizational ethics. San Francisco, CA: Berrett-Koehler Publishers.Google Scholar
  70. Porter, M. E., & Kramer, M. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78–92.Google Scholar
  71. Porter, M. E., & Kramer, M. (2011). Creating shared value: How to reinvent capitalism and unleash a wave of innovation and growth. Harvard Business Review, 89(January–February), 62–77.Google Scholar
  72. PriceWaterhouseCoopers. (2006). Corporate responsibility in the pharmaceutical industry. Price Waterhouse Coopers Website. Accessed May 2004, from www.pwc.com.
  73. PWC. 2016. New regulations bring new risks to life sciences firms. Price Waterhouse Coopers Website. Accessed March 2016, from http://www.pwc.com/us/en/health-industries/pharma-life-sciences/regulatory-risk-compliance.html.
  74. Quist-Arcton, O. (2001). Drugs giants drop case against South Africa. Accessed September 2009, from www.AllAfrica.com, Johannesburg.
  75. Reich, R. (2007). Supercapitalism: The battle for democracy in an age of big business. Cambridge: Icon Books.Google Scholar
  76. Rifkin, J. (2005). Ultimate therapy. Harvard International Review, 27(1), 44–49.Google Scholar
  77. Roddick, A. (2000). Business as unusual. London: Thorsons Publishers.Google Scholar
  78. Rosewitz, B., & Webber, D. (1990). Reformversuche und Reformblokaden im Deutschen Gesundheitswesen [Reform Attempts and Reform Blockages in the German Health System]. Frankfurt: Campus.Google Scholar
  79. Sauerborn, R., & Bäringhausen, T. (2002). One hundred and eighteen years of the German health insurance system: Are there any lessons for middle-and low-income countries. Social Science & Medicine, 54, 1559–1587. Accessed March 2016, from http://www.ministerial-leadership.org/sites/default/files/resources_and_tools/10%20german%20health%20insu.pdf.
  80. Silberhorn, D., & Warren, R. C. (2007). Defining corporate social responsibility: A view from big companies in Germany and the UK. European Business Review, 19(5), 352–372.CrossRefGoogle Scholar
  81. Spinello, R. A. (1992). Ethics, pricing and the pharmaceutical industry. Journal of Business Ethics, 11(8), 617–626.CrossRefGoogle Scholar
  82. Stark, A. (1994). What’s the matter with business ethics? Harvard Business Review, May–June, 38–48.Google Scholar
  83. Statistica. (2016). Facts on the pharmaceutical industry worldwide. Accessed March 2016, from http://www.statista.com/topics/1764/global-pharmaceutical-industry/.
  84. The Economist. (2004). Business trials and tribulations: Pharmaceuticals, 19 June 2004, p. 74.Google Scholar
  85. The Economist. (2014). Pharmaceutical pricing: The new drugs war. The Economist, 4 January, 2014. Accessed March 2016, from http://www.economist.com/news/leaders/21592619-patents-drugs-are-interests-sick-well-industry-protection-should-not.
  86. The Guardian. (2008). Parallel trade in drugs puts EU patients at risk. The Guardian, 29 June, 2008. Accessed March 2016, from http://www.theguardian.com/business/2008/jun/29/pharmaceuticals.
  87. The Guardian. (2011). How European nations run nation health services. The Guardian, 11 May, 2011. Accessed March 2016, from http://www.theguardian.com/healthcare-network/2011/may/11/european-healthcare-services-belgium-france-germany-sweden.
  88. The Guardian. (2015). UK cancer survival rates trail 10 years behind other European countries. The Guardian, 24 March, 2015. Accessed March 2016, from http://www.theguardian.com/society/2015/mar/24/uk-cancer-survival-rates-trail-10-years-behind-those-in-european-countries.
  89. Third World Network. (2004). Third world network: Aids activists march against pharmaceutical companies. Accessed October 2004, from www.twnside.org.sg.
  90. Time. (2004). Curbing the drug makers. Time Magazine, 5 July 2004, pp. 40–42.Google Scholar
  91. Ulrich, V. (1996). Health care in Germany: Structure, expenditure and prospects. In W. McArthur, C. Ramsay, & M. Walker (Eds.), Healthy incentives: Canadian health reform in an international context. Vancouver: The Fraser Institute.Google Scholar
  92. Ulrich, P., & Fluri, E. (1995). Management: Eine Konzentrierte Einführung (Management a Concise Introduction) (7th ed.). Haupt (Bern/Stuttgart/Wien).Google Scholar
  93. VFA. (2005). Verband der forschende Pharma-Unternehmen [Club of Research-Orientated German Pharmaceutical Companies]. Accessed June 2005, from www.fs-arzneimittelindustrie.de.
  94. VFA. (2010). Verband der forschende Pharma-Unternehmen [Club of Research-Orientated German Pharmaceutical Companies]. Accessed February 2010, from www.fs-arzneimittelindustrie.de.
  95. VFA. (2013). Verband der forschende Pharma-Unternehmen [Club of Research-Orientated German Pharmaceutical Companies]. Accessed December 2013, from http://www.vfa.de/.
  96. Wagner, G. R. (2006). Gesellschaftliche Verantwortung als Unternehmensbild? [Social Responsibility as a Corporate Philosophy]. Kapital und Moral in Susanne Hilger. Köln/Cologne (Böhlau).Google Scholar
  97. WHO. (2005). Social health insurance: Key factors affecting he transition towards universal coverage. World Health Organisation, Geneva. Paper written by Guy Carrin and Chris James. Accessed March 2016, from http://www.who.int/health_financing/documents/shi_key_factors.pdf.
  98. WHO. (2016a). Pharmaceutical industry. Accessed March 2016, from http://www.who.int/trade/glossary/story073/en/.
  99. WHO. (2016b). Pharmaceutical industry. Accessed March 2016, from http://apps.who.int/medicinedocs/documents/s16198e/s16198e.pdf.
  100. Woodward, D., Edwards, P., & Birkin, F. (2001). Some evidence on executives: Views of corporate social responsibility. British Accounting Review, 33, 357–397.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Linda O’Riordan
    • 1
  1. 1.FOM University of Applied SciencesHochschule für Oekonomie & ManagementEssenGermany

Personalised recommendations